Chapter 7:

A young, married couple had credit card debt, medical bills, veterinarian bills and club membership obligations.  Some of the debt was incurred before they were married.  They were having a baby and he had been out of work for six months.  They did not have enough money to cover all their monthly bills.The creditors were calling them at all hours of the day and night and even at her work.  She never thought they would be able to buy a home for their baby.

A chapter 7 bankruptcy stopped the harassing telephone calls.  They eliminated all of their debt, a little more than $35,000.00.  They were able to keep both cars and stay in their apartment.  The couple made one bankruptcy appearance to meet with the trustee.  The process lasted four months and relief was obtained at the beginning of the case.

With the fresh start, things went well; he was able to find new work.  Two years later we were able to refer them to a mortgage broker who got them a standard mortgage at 6.25% and no points.  They and their baby are enjoying their new home and new life.


Chapter 13:

This middle age couple, with three children, fell behind on their mortgage because he had been injured in a car accident and out of work for nearly a year.  They had exhausted their savings and stopped paying their mortgage to cover their other bills.  They thought a recovery in the auto accident lawsuit would provide the money they needed to reinstate the mortgage.  The lawsuit took a lot lot longer than they expected and the money they finally received was not enough to reinstate the mortgage.

The mortgage company defaulted the loan and sued in mortgage foreclosure.  Two weeks before the sheriff sale of their home they met with us.  We filed a chapter 13 bankruptcy.  The sheriff sale was stopped; the mortgage company and county sheriff had no choice but to follow the court's order.  The couple is now in a bankruptcy court supervised, debt repayment plan on their mortgage.  All other creditor calls and lawsuits were stopped.  The couple's credit card debt and past due utility bills were eliminated.  They are back on track.